creation unit

(redirected from Creation Units)

Creation Unit

The set of securities underlying an exchange-traded fund. A creation unit is a basket of securities traded on a particular exchange that are assembled and repackaged as a single share of the exchange-traded fund.

creation unit

The minimum number of shares of an exchange-traded fund, usually between 25,000 to 300,000, that will be delivered to authorized participants in exchange for the predefined basket of securities underlying the fund's securities. Creations and redemptions occur at end-of-day net asset values.

Creation unit.

A creation unit is a basket of securities that corresponds to a specific number of shares in an exchange traded fund (ETF). The securities in the creation unit are those that are included in the ETF's underlying index.

An authorized participant in an ETF -- typically an institutional investor -- assembles the relevant basket of securities and transfers that creation unit to the ETF sponsor in exchange for fund shares, which can then be sold to other investors.

References in periodicals archive ?
Creation units of Gabelli NextShares will be distributed by G.
Part of this rule includes a new form (N-CEN) that will require ETFs to provide details on their exchange listing, listing of authorized participants and activity, information about creation units, and transaction fees.
The Fund will cease accepting creation units on December 9, 2016.
The funds will cease trading at the end of the trading day on October 8, 2015, no new creation units will be sold for any fund after that time, and each fund will liquidate on or around October 22, 2015.
DE), has said that effective immediately, the creation limit for Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSE ARCA: ASHR) will increase from the previous limit of one creation unit per day to five creation units per day.
Advisors who value transparency, operational efficiency and liquidity also have the ability to work with trading desks to aggregate their client trades through a market maker and potentially obtain an execution via new ETF creation units.
Shares, other than Creation Units, may be sold only through a broker and may be subject to brokerage commissions.
It is an open-end investment company that continuously issues and redeems its shares of stock in creation units in exchange for the delivery of a basket of securities representing an index whose performance the ETF endeavors to track.
Furthermore, Eisai has concentrated all functions aimed at possible developments in this field, from biomarker discovery research to companion diagnostics development, into its Biomarker and Personalized Medicine Core Function Unit, and through collaborations with other drug creation units such as its Oncology Product Creation unit, is continuing endeavors toward further realizing personalized medicine.
8226; Special consideration for creation units of ETFs with emerging markets exposure
The SECP circular has stipulates the regulatory requirements for the authorization of ETFs, including investment restrictions, issuance and redemption of creation units, pricing and dealing, additional disclosure requirements, role of the authorized participants, and fees and expenses.
Some institutional investors or wealthy individuals may hold the creation units in their own portfolios.